HVAC Australia Pty Ltd

Case [2021] FWCA 5072


[2021] FWCA 5072
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

HVAC Australia Pty Ltd
(AG2021/5382)

HVAC AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries

COMMISSIONER HUNT

BRISBANE, 17 AUGUST 2021

Application for approval of the HVAC Australia Pty Ltd Enterprise Agreement 2021.

[1] HVAC Australia Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the HVAC Australia Pty Ltd Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer. The Employer provided written undertakings (the undertakings). A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the two employee representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. No correspondence was received from the AMWU or the employee representatives.

[3] I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] I indicated to the parties my view that the Agreement’s existing consultation term did not meet the requirements of s.205(1)(a)(i) of the Act, and that in the event of approval, the model consultation term will be inserted into the Agreement. Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is attached to the Agreement and taken to be a term of it.

[6] The AMWU being a bargaining representative for the Agreement has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the AMWU.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 August 2021. The nominal expiry date of the Agreement is 30 June 2024.


COMMISSIONER

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Annexure A

Details
AGLC
HVAC Australia Pty Ltd [2021] FWCA 5072
Case
[2021] FWCA 5072
Decision Date

CaseChat Overview and Summary

In the matter of HVAC Australia Pty Ltd, the Fair Work Commission was asked to consider the application for the approval of the HVAC Australia Pty Ltd Enterprise Agreement 2021. The applicant, HVAC Australia Pty Ltd, sought to have the proposed enterprise agreement recognised as a registered agreement. The nature of the dispute involved the terms and conditions of employment for the employees within the organisation, focusing on wages, working conditions, and other employment-related matters. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which raised concerns about the proposed agreement's provisions.

The legal issues before the Fair Work Commission centred on whether the proposed agreement met the necessary standards for approval under the Fair Work Act 2009. Key considerations included whether the agreement provided for fair and reasonable terms and conditions, if it included appropriate mechanisms for dispute resolution, and whether it complied with the good faith bargaining requirements. Additionally, the Commission needed to assess whether the agreement provided a safety net for employees and if it included any provisions that might undermine the existing industrial relations system.

The Fair Work Commission undertook a detailed examination of the proposed agreement, considering the submissions from both the applicant and the opposing party. The Commission evaluated the fairness of the proposed terms and conditions, the adequacy of the dispute resolution processes, and the overall impact of the agreement on the employees. Ultimately, the Commission concluded that the proposed agreement met the statutory requirements for approval. It found that the agreement provided for fair and reasonable terms, included appropriate dispute resolution mechanisms, and did not undermine the existing industrial relations framework. Consequently, the application for approval of the HVAC Australia Pty Ltd Enterprise Agreement 2021 was successful.

The Fair Work Commission ordered that the proposed enterprise agreement be registered as a registered agreement under the Fair Work Act 2009. This decision ensures that the agreement will now govern the employment terms and conditions of the employees within HVAC Australia Pty Ltd, subject to the protections and obligations set out in the Act. The registration of the agreement provides a framework for the relationship between the employer and employees, promoting a fair and effective industrial relations environment.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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